A taxable person when made supply of goods or services (or both) to another person (recipient)

for a valuable consideration in the course / furtherance of business has to pay tax (GST)

 Who is Person  Where to supply  Whether all goods or services are

 Registered or not
 Registration is
compulsory or not
 Composition scheme
(inter-state or intra- taxable.
state)  Exempted goods or services
 Place of supply  Special category of goods or
 Time of supply services
 Zero rate supply

 Who is another person  Valuation of supply  What is furtherance of business

(recipient)  Mixed goods and  Tax rates
 Whether another person services  Composite scheme
has to be registered or  Composite goods  Input tax credit
not and services
 Unregistered person
 Reverse Charge
Mechanism

Dr. Sunil Kumar, Deptt. of Commerce, DDUC

 Structure of GST

• There are four legislative Acts those govern GST. The prime jurisdiction of these Acts is
on the basis of State, Union Territory, and Central Govt.
• The Central GST is the parent body containing provisions applicable on Centre, and
Union Territory (without legislative power). This Act is called CGST. It also provide a
fundamental understanding on GST mechanism, and a base to State GST Acts.
50% of the tax rate will be imposed
CGST and collected by Central Govt. and
Intra-State Transactions + remaining 50% will be imposed and
SGST/UTGST collected by respective STATE/UT

Tax is imposed by Central

Inter-State Transactions Integrated Government and adjustment of
GST (IGST) input tax credit is made later on.
Rate of IGST = CGST + SGST/UTGST

• CGST is a parent Act. Majority of the provisions relating to GST Laws are covered under
CGST unless stated otherwise.
• In addition to CGST, IGST also lays down provisions especially in case of inter-state(s)
transaction.
Dr. Sunil Kumar, Deptt. of Commerce, DDUC
 Registration under GST

CGST Act 2017 and Rules on CGST governs the registration. Following salient sections
and rules are important to note down.

Section 2(84) of the CGST defines “Person”

Section 2(94) of the CGST defines “Registered Person”

Section 2(107) of the CGST defines “Taxable Person”

Chapter VI containing Section 22 to 25 of the CGST Act explains the provisions

(classification) on registration

Rules 8 to 26 are on procedure to get registration

 Bare Reading of CGST Act, 2017

2(84) “person” includes—

(a) an individual;
(b) a Hindu Undivided Family;
(c) a company;
(d) a firm;
(e) a Limited Liability Partnership;
(f) an association of persons or a body of individuals, whether incorporated or not, in
India or outside India;
(g) any corporation established by or under any Central Act, State Act or Provincial Act
or a Government company as defined in clause (45) of section 2 of the Companies Act,
2013;
(h) any body corporate incorporated by or under the laws of a country outside India;
(i) a co-operative society registered under any law relating to co-operative societies;
(j) a local authority;
(k) Central Government or a State Government;
(l) society as defined under the Societies Registration Act, 1860;
(m) trust; and
(n) every artificial juridical person, not falling within any of the above;
 ……………..Bare Reading of CGST Act, 2017

2(94) “registered person” means a person who is registered under section 25 but does
not include a person having a Unique Identity Number;

(107) “taxable person” means a person who is registered or liable to be registered

under section 22 or section 24;

Registration is an essential step to recognises a person as supplier of goods and

services or both and authorise him to collect taxes from his customers and pass on
the credit of taxes paid on the goods or services supplied to the recipients.

To claim input tax credit registration is a pre-condition.

Under GST Law, supplier has to obtain State-wise registration

 Classification of Registration

Invoking Voluntary Suo motu

Threshold Limit Registration Registration
S. 22 S.25(3) S. 25(8)

Compulsory Deemed Casual Tax Payer or N-R

Registration Registration taxable person Registration
S. 24 S. 26 S. 27

Section 23: Exemption from registration

 Special Category States

The Constitution of India grants special status to 11 States including 7 sister States (North-
Eastern States, and J&K, H.P, Sikkim and Uttarakhan. The notification (no. 10/2019 dated
7/3/2019 of CGST) extend exemption of getting registration by relaxing exemption of Rs.
40 lakh to other States. This overlapping makes it essential to understand the registration
process from State perspective vis-à-vis threshold limit.
After the said notification, discussion may be classified on the basis of following points:

Threshold limit of Rs. 10 lakh for both goods and services

Threshold limit of Rs. 20 lakh for both goods and services

Threshold limit of Rs. 40 lakh for goods and Rs. 20 Lakh for services
 Invoking Threshold Limit (S. 22)

States with threshold States with threshold States with threshold limit of Rs. 40
limit of Rs. 10 lakh limit of Rs. 20 lakh Lakh for Goods and Rs. 20 Lakh for
Services

Manipur Arunachal Pradesh Jammu and Kashmir

Mizoram Meghalaya Assam
Nagaland Sikkim Himachal Pradesh
Tripura Uttarakhand All Other States
Puducherry
Telangana

The above provision is not applicable in following cases:-

(a) In case of compulsory registration u/s 24.
(b) In case of supply of goods viz., Ice cream and other edible ice, whether or not
containing cocoa, Pan Masala and Tobacco and manufactured tobacco substitutes
(c) persons engaged in making intra-State supplies in the States of Arunachal
Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana,
Tripura, Uttarakhand
(d) In case of voluntarily registration u/s 25(3).
 Examples
1. Mr. A, an individual, with business establishment in Himachal Pradesh deals in intra-
state supply of shoes with aggregate turnover of Rs. 25 lakh in the current financial
year , is not required to get registration; as the applicable threshold limit for the
registration is Rs. 40 lakh.
2. If all given information remain same of point no. 1, but the place of business
establishment changes to Uttarakhand from Himachal Pradesh, then Mr. A is required
to get registration.
3. If all given information remain same of point no. 1 except the nature of supply.
Suppose, Mr. A deals exclusively in ice-cream products then he has to get registration,
because ice-cream is an exception.
 Invoking Threshold Limit (S. 22)
1. A taxable person who achieve the level of aggregate turnover, stated in the previous
slide, during the financial year has to get registration within 30 days from the day
when aggregate turnover touched the specified limit.
2. If taxable supplier has different business branches in same State of same business
then it has to take one registration. If taxable supplier has different business verticals
in same State then it has to take separate registration for each business verticals.
3. If taxable supplier has different branches of business in different States either of same
business or separate business verticals then it has to take registration in each state
separately.
4. If one taxable supplier has business in a State other than special category state and
another business branch in a special category state then its limit for the purpose of
aggregate turnover would be Rs. 10 Lakh instead of Rs.20 Lakh.
5. If a person was registered under any of the previous laws those subsumed in GST like,
Vat, service tax etc. are required to get registration under GST Law with effect from
the appointed day i.e. day when GST law came into effect.
6. On transfer business, if whole business is transferred to another taxable person then
transferee has to take fresh registration on his/its own name. The case is applicable to
all persons ranging from an individuals to corporate /artificial judicial person.
 Business Vertical

Section 2 (18) of the CGST Act defines the term Business Vertical reproduced below

“business vertical” means a distinguishable component of an enterprise that is engaged

in the supply of individual goods or services or a group of related goods or services
which is subject to risks and returns that are different from those of the other business
verticals.
Explanation.––For the purposes of this clause, factors that should be considered in
determining whether goods or services are related include––
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the goods or services;
(d) the methods used to distribute the goods or supply of services; and
(e) the nature of regulatory environment (wherever applicable), including banking,
insurance, or public utilities;
 What is Aggregate Turnover?

Section 2(6) “aggregate turnover” means the aggregate value of all taxable supplies
(excluding the value of inward supplies on which tax is payable by a person on reverse
charge basis), exempt supplies, exports of goods or services or both and inter-State
supplies of persons having the same Permanent Account Number, to be computed on all
India basis but excludes central tax, State tax, Union territory tax, integrated tax and
cess;
All supplies on behalf of principal xxxx
Add: turnover of all branches with same PAN xxxx
Add: Exempted supplies xxxx
Add: Goods sent for job work and sold therefrom xxxx
Add: export of goods and services xxxx
Aggregate Turnover xxxx

Followings do not constituted while making calculation of aggregate turnover.

i) Inward supplies under reverse charge
ii) GST and other cess paid during the course of business.
 Exemption from Registration
23. (1) The following persons shall not be liable to registration, namely:––
(a) any person engaged exclusively in the business of supplying goods or services or both
that are not liable to tax or wholly exempt from tax under this Act or under the Integrated
Goods and Services Tax Act;
(b) an agriculturist, to the extent of supply of produce out of cultivation of land.
(2) The Government may, on the recommendations of the Council, by notification, specify
the category of persons who may be exempted from obtaining registration under this Act.
Under section 23(2), through notification No. 10/2019 dated March 7, 2019, a person is
exempted from registration on the fulfilment of following conditions.
(i) Engaged in supply of goods, (ii) aggregate turnover does not exceed 40 lakh, (iii)
compulsory registration u/s 24 is not required, (iv) not engaged in supply of certain goods
(ice-cream, pan masala or tobacco goods or tobacco substitutes), (v) not a supplier in
Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim,
Telangana, Tripura, and Uttarakhand.
Besides above, supplier of services, having turnover up to Rs. 20 lakh (Rs. 10 lakh in
case of SpCatSt, Mizoram, Tripura, Manipur, and Nagaland) making inter state
supplies.
Supplier of services, having turnover up to Rs. 20 lakh making supplies through e-
commerce platforms.
 Compulsory Registration [S. 24]

The section 24 governs the provisions on compulsory registration. The person falls under
S.24 has to get registration irrespective of effect of invoking provisions of S. 22.
The salient list is as follow:
1. Persons making any inter-state taxable supply (exception handicraft goods inter-state
supplier having aggregate turnover less than Rs. 20/10 lakh with PAN number).
2. Casual Taxable Person [defined under S. 2(20)]
3. Persons who are required to pay tax under reverse charge
4. Person who are required to pay tax under S. 9(5) [E-Commerce Activities].
5. Non-resident person making taxable supply.
6. Persons who are required to deduct TDS under S. 51
7. Input service distributor
8. Electronic commerce operator
9. Person dealing in online information and database access
10. Such other person specified by Govt. through notification on the recommendation of
GST Council.
 Casual Taxable Person

Section 2(20) of the CGST Act defines Casual Taxable Person as below

“casual taxable person” means a person who occasionally undertakes transactions

involving supply of goods or services or both in the course or furtherance of business,
whether as principal, agent or in any other capacity, in a State or a Union territory where
he has no fixed place of business;
 Voluntarily Registration
23(3) A person, though not liable to be registered under section 22 or section 24 may get
himself registered voluntarily, and all provisions of this Act, as are applicable to a
registered person, shall apply to such person.

Deemed Registration
26. (1) The grant of registration or the Unique Identity Number under the State Goods and
Services Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be
a grant of registration or the Unique Identity Number under this Act subject to the condition
that the application for registration or the Unique Identity Number has not been rejected
under this Act within the time specified in sub-section (10) of section 25.
 Lets do some practice
1. Mr. A has two offices, one in Delhi and second in Maharashtra. His turnover exceeds Rs.
40 lakhs. Thus he has to get registration in both States Separately. In order to determine
his aggregate turnover, turnover from both business establishments i.e., Delhi and
Maharashtra will be taken into account.
2. Mr. X owns a petrol pump in Haryana, as well as supply machine lubricants. He wants to
know what will be included in his aggregate turnover. Answer to his query is that both
supplies that are taxable as well as non-taxable would be taken into account, thus,
supply of petrol (non-taxable under GST), and machine lubricants will be added for the
purpose of aggregate turnover.
3. Mr. Y of Telangana is exclusively deals in intra-supply of shoes. His aggregate turnover in
the current financial year is Rs. 24 lakh. Whether he is exempted from GST registration
or not.
Answer: He has invoked registration threshold limit of Rs. 20 lakh in case of Telangana,
he is liable to get registration.
4. Mr. Z deals in tourism business making intra-state supply, having establishment in
Mizoram with aggregate turnover of Rs. 9.9 lakh; seeking advice on registration.
Answer: He is not liable to get registration under GST laws.
5. Mr. B is a farmer, in the current year his turnover includes supply of wheat produced of
Rs. 32 lakh, and trading of rice of Rs. 10 lakh.
Mr. B is liable to get registration, as total turnover (taxable-trading of rice, and exempt-
wheat produce) exceeds Rs. 40 lakh.
 Registration: Procedure
General Requirement
1. Registration under GST laws is fully computerised without any intermediate intervention.
The registration is made at State level, not at Centralized platform. A person
required/wish to get register under GST must have PAN, mobile number, and e-mail ID.
2. To file application for GST registration, Part A of Form GST REG-01 is to be filed on the
common portal, either directly or through a Facilitation Centre notified by the
Commissioner.
3. PAN number, e-mail ID, and mobile number are verified through OTP. On successful
verification, a temporary reference number is granted and communicated to the
applicant on the said mobile and e-mail address. Using the generated reference number,
applicant shall electronically submit an application in Part B of Form GST REG-01 along
with specified documents.
4. On receipt of an application, an acknowledgement is issued electronically to the applicant
in Form GST REG-02.
Time Limit
5. A person, crossed threshold limit u/s 22 or invoked s. 24 is required to file application for
registration within 30 days from the date on which he becomes liable to registration.
6. A casual taxable person or a non-resident taxable person is required to apply for
registration at least 5 days prior to the commencement of business.
7. A person who is not liable to be registered under S. 22 or 24 may get himself registered
voluntarily. On voluntary registration, all provisions of this Act are equally applicable as in
case of S.22 or 24.
 Registration: Procedure
Where to get Registration: Geographical Area/ State /UT
7. A person who crossed threshold limit u/s 22 or invoked s. 24 is required to file
application for registration within 30 days from the date on which he becomes liable
to registration. The liable person has to get registration in every such state/UT in
which he is so liable.
8. A casual taxable person or a non-resident taxable person is required to apply for
registration at least 5 days prior to the commencement of business. A person applying
for registration as a casual taxable person shall be given a temporary reference
number by the common portal for making advance deposit of tax in accordance with
the provisions of s. 27, and sub-rule 5.
9. A person who makes a supply from the territorial waters of India is required to get
registration in the costal State/UT where the nearest point of the appropriate base
line is located.
10. Registration needs to be taken state-wise, i.e., there are no centralized registration
under GST. A business entity having its branches in multiple States will have to take
separate State-wise registration for the branches in different States.
 Verification and Approval [Rule 9]
11. After submitting application, the application and the accompanying documents shall be
forwarded to proper officer who shall examine the application and has to process
application within three working days from the date of submission of the application
12. If proper officer is not satisfied, or found application to be corrected then proper
officer may issue a notice to the applicant electronically in Form GST REG-03 within 3
working days. The applicant shall furnish such correction electronically, in Form GST
REG-04 within a period of seven working days from the receipt of such notice.
13. If required clarification/ correction is not furnished or proper officer is not satisfied
with furnished information then he shall, for reasons to be recorded in writing, reject
such application and inform the applicant electronically in Form GST REG-05.
14. On the fulfilment of above requirement, a certificate of registration in Form GST REG-
06 showing Principal Place of Business (PPoB) and Additional Places of Business (APoB)
shall be made available to the applicant on the common portal and GSTIN shall be
assigned.
15. If the proper officer fails to take any action, (a) within 3 working days from the
submission of application, or (b) within seven working days on receipt of clarification/
correction then grant of registration shall be deemed to have been approved.
 Effectiveness of Registration (Rule 10 (2 to 5))

16. The registration shall be effective from the date on which the person becomes liable to
registration where application for registration has been submitted within a period of 30
days from such date.
17. Where an application for registration has been submitted after the expiry of thirty days,
then the effective date of registration shall be the date of grant of registration by proper
officer.
Suo moto registration (Rule 16)
18. Where, pursuant to any survey, enquiry, inspection, search or any other proceeding
under the Act, the proper officer finds that a person liable to registration under the Act
has failed to apply for such registration, such officer may register the said person on a
temporary basis and issue an order in Form GST REG-12. The such registration shall be
effective from the date of such order granting registration. Such person has to submit
application for registration in form and manner provided in rule 8 or rule 12.
 Separate Registration for Multiple Places within a State or UT [Rule 11]
19. Any person having multiple places of business within a State or UT requiring a separate
registration for any such place of business.
20. Grant of Registration to persons required to deduct tax at source or collect tax at source
u/s 51 and 52 are required to apply in Form GST REG -07 (Rule 12). A non-resident
taxable person has to make application in Form GST REG-09 at least 5 days prior to
commencement of business. A tax identification number or unique number is allotted
to deposit electronic cash ledger in order to grant certificate. The allotment of GSTIN to
non-resident taxable person, and casual tax payer is issued only for 90 days which is
extendable to another 90 days after depositing advance tax in electronic cash ledger.